Young Drivers Targeted by Fake Insurance Policies

In a disturbing new rash of ghost car insurance scams, young drivers are increasingly targeted by criminals selling fake car insurance. The scams are targeted at young drivers through social media.

Action Fraud, a fraud and cybercrime reporting center, has released reports showing that between November 2014 and October 2017, over 850 people were targeted by so-called “ghost broking,” or the sale of fake car insurance policies.

The total losses caused by these fake policies, to both organizations and the public, are thought to be around $779,000.

In addition to harming the victims of these scam insurance policies, ghost brokers also harm the insurance industry as a whole, driving up the cost of insurance premiums for all motorists.

Read More: How To Find The Best Insurance Deal For Your Car

How to Avoid Fake Insurance Scams

Generally, fake car insurance scams target men between the ages of 20 and 29. This is because men of this age, especially those who have only recently passed their driving test, pay the highest premiums in the market due to the higher risk.

So, if you are looking for car insurance and are worried about ghost brokers, here are some tips for avoiding car insurance scams:

• Avoid insurers on social media – Cybercriminals are increasingly using social media to attempt to scam people with fake insurance. Whenever considering insurance coverage, drivers are best advised to choose a reputable motor insurer and to ensure they check all of their paperwork.
• Be wary of heavily discounted policies – Ghost brokers trick unsuspecting victims into accepting offers of heavily discounted car insurance, leaving them with a policy that isn’t worth the paper it’s written on and open to the severe harm of driving without valid insurance. The unfortunate reality is that if a deal sounds too good to be true, it probably is.
• Use a recognized broker – There’s nothing wrong with fishing around through brokers and different insurance companies for the best deal. It’s the sensible thing to do. But most honest brokers will happily show you their credentials, have a proper website, and a registered business address you can check.